Kickbacks to HR professionals by management institutes to get their students placed

It was quite a disclosure for me, when somebody with whom I was interacting made a startling disclosure.

The lady with whom I was interacting was a seasoned faculty with exposure to major business school. She revealed that private business school with substandard students pool in money and grease the palms of hr recruiters of various companies.
Now if it is a distant reality, then where are the students of government universities, going to go???????
Then isn't it better to join a private university/institute rather then pay heavy fees to setups which are quasi/false in nature, with no possible end results in the form of a career.